Articles Posted in Non-Traded REITs

Portland, OR Non-Traded REIT Fraud Attorneys

Representing Oregon Alternative Investment Investors In Recovering Their Losses

From our Portland securities law office, Shepherd Smith Edwards and Kantas (investorlawyers.com) represents Oregon non-traded real estate investment trust (non-traded REIT) loss investors in pursuing the damages they are owed by negligent or fraudulent financial advisers. Non-traded REITs are alternative investments and they are not suitable for everyone. Unfortunately, unsuitable investment recommendations is a common reason why investors end up losing money unnecessarily. Often high-risk, illiquid, and complex, non-traded REITs tend to pay broker-dealers high commissions and fees, which sometimes causes financial advisors to disregard clients’ best interests.

Blackstone REIT Investors Continue To Seek Redemptions. Our Non-Traded REIT Fraud Loss Lawyers Are Here To Evaluate Any Losses

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate claims of losses involving Blackstone Real Estate Investment Trust (BREIT). While now, according to a July 1 client letter, it is reportedly able to keep up with investor redemption requests—BREIT received below $806M in buyback demands in June—we remain concerned about possible investment losses. If your broker-dealer marketed/sold you Blackstone REIT, another REIT or a non-traded REIT, contact us today to request your free, no-obligation case assessment.

According to a yearly report by Blackstone Real Estate Investment Trust, in 2023 it paid out more in distributions—$2.8B—than it possessed in cash flow—$2.7B. Investor redemption requests played a huge role in its woes and BREIT wasn’t even able to fully repay every withdrawal request that was made starting in late 2022 until February 2024. Its board of directors even approved going over the 5% of net asset value (NAV) quarterly limit to satisfy all repurchase requests in June 2024.

SSEK Houston Non-Traded REIT Loss Lawyers Representing Texas Non-Traded Real Estate Investment Trust Investors Against Negligent Brokers

Shepherd Smith Edwards and Kantas (investorlawyers.com) represent investors throughout The Lone Star State who have sustained serious portfolio losses because of non-traded real estate investment trusts (non-traded REITs) that were marketed and sold to them by a financial advisor. Contact us today.

What Is a Non-Traded REIT and How Is It Different From An REIT? 

Are You An Investor Who Suffered Losses in Starwood Real Estate Income Trust? Contact our Non-Traded REIT Attorneys for help!

$10B Non-Traded REIT Is In Trouble As Investors Continue To Clamor For Redemptions

If you are waiting to get your money from the Starwood Real Estate Income Trust (SREIT), Shepherd Smith Edwards and Kantas (investorlawyers.com) want to talk to you. The $10B non-traded real estate investment trust (non-traded REIT) from Starwood Capital Group has been limiting investor redemptions in an attempt to preserve its cash and credit. This includes, according to regulatory filings, only fulfilling $500M of the $1.3B of investor withdrawals made in the first quarter of this year. Withdrawal requests for just 2023 were said to be at $2.6B. Starwood REIT recently reportedly withdrew $1.3B from its credit line of $1.5B to meet redemption demands. SREIT’s total indebtedness is believed to be as high as $15B.

Shepherd Smith Edwards and Kantas Continue Non-Traded REIT Loss Lawyers  to Investigate Hartman vREIT XXI Over Investor Losses

Non-Traded REITs Pay Brokers High Commissions But Can Be Unsuitable For Many Investors

If you sustained losses after your financial advisor marketed and sold you Hartman vREIT XXI, Shepherd Smith Edwards and Kantas (investorlawyers.com) would like to talk to you. For the past year we have been looking into whether there were stockbrokers who allegedly unsuitably recommended this non-traded real estate investment trust (non-traded REIT), which invests in different kinds of commercial properties that are mostly in Texas.

Family Seeks Up to $1M in Damages From Cetera Investment Services Over Non-Traded REIT Losses in Cole Capital, Arc Realty Finance 

Another Cetera Broker Accused of Using Shared Cultural Affinity To Gain Trust of Investors of Chinese Descent 

More investors of Chinese descent are suing broker-dealer Cetera because of losses they sustained in allegedly unsuitable investments. The claimants, who live in California, are seeking up to $1,000,000 in damages. They contend that their Cetera Investment Services broker John Yin (Haiguang Yin), whom they met through East West Bank, used their mutual cultural affinity to gain their trust. He then allegedly overconcentrated all of their assets in high-risk, illiquid private placements that were unsuitable for them given their low-risk tolerance level.

Are You A Moody National REIT II Investor Who Has Suffered Serious Losses? Our Non-Traded REIT Loss Law Firm Can Help You Assess Whether You Have Grounds for a Broker Fraud Lawsuit

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to look into losses by investors whose brokers recommended Moody National REIT II. The non-traded real estate investment trust (non-traded REIT), which invests primarily in hotels and securities, has been under scrutiny since 2020 when it drastically fell in value and its public offering and distribution payments were suspended.

The COVID-19 pandemic shutdown really took a toll on Moody National REIT II.  While its share price was originally offered at $25/share, by late 2021 the non-traded REIT’s share price on the secondary market was $8/share. In 2023, it may have been selling for $6.60/share on the limited market.

Ex-LPL Broker Marketed Non-Traded Investments To Mississippi Retiree 

A retired investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against LPL Financial and its former broker, Tamber King Proctor, seeking up to $100K in damages. 

The claimant contends that LPL Financial and Proctor should have never recommended that he invest in the business development company (BDC), FS Energy & Power Fund (FSEP), and the Northstar Healthcare Real Estate Investment Trust (REIT). 

Unsuitable Investment Recommendation May Be a Factor in Brokerage Firm Customers’ Losses  

Investors in RW Holdings NNN REIT, Inc., a non-traded real estate investment trust formerly called the Rich Uncles NNN REIT, have suffered significant losses this year.

Not only did RW Holdings NNN REIT announce in May 2020 that it was suspending its offering and plans to revise its net asset value (NAV)/share, but also, any NAV and distribution rate would likely be lower in the wake of the impact that COVID-19 is having on the markets. The company pointed to its inability to collect 100% of all contractual rents because of the pandemic as a reason for re-evaluating its distribution rate. 

Latest FINRA Arbitration Claim Allege REIT Losses 

A number of investors recently filed a customer complaint against former Kalos Capital broker, Curtis Leroy Whipple, who was with the firm out of Plymouth, Michigan until this year.  He faces allegations of unsuitability, misrepresentations, and lack of due diligence related to the claimants’ United Development Funding IV (UDF IV) losses. 

UDF IV is a real estate investment trust (REIT) that mostly invests in secured loans for acquiring and developing land into single-family home lots, as well as to construct homes and model homes.  UDF IV and the other UDF non-traded REITs have been accused in recent years of being part of a $1B Ponzi scam. United Development Funding is based out of Dallas, Texas. 

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